Valero to expand crude capacity at its McKee refinery in Texas

HOUSTON (ICIS)--Valero plans to add 25,000 bbl/day of capacity to the crude unit of its 170,000 bbl/day McKee refinery in Texas over the next three years, the company announced on Wednesday.

The refinery’s total capacity after the expansion would be 195,000 bbl/day. The refinery will process West Texas Intermediate (WTI) crude oil from Midland to feed the increased crude runs.

“The expansion plans will enable Valero to capitalise on the production of West Texas and locally produced crudes,” said Joe Gorder, Valero’s executive vice president and chief commercial officer.

The plans for expansion are a follow-up to the previously announced Panhandle crude gather system expansion project, which is nearing completion, Valero said.

The crude gathering system expansion involves looping an existing pipeline from Valero’s storage facility in Perryton, Texas, as well as building additional pump stations and storage facilities. This would help bring more locally produced crude to the McKee refinery.

“The McKee refinery will have more flexibility and more options, and that benefits athe area as well as the surrounding area,” Gorder said.